Dear Professor Pfeifer,

I feel a little confused in understanding the mixing shocks. I searched the forum and did not find the explicit solution. Would you please give some advice ? Thank you for your time !

I intend to add a permanent deterministic shock into the stochastic model by using varexo_det. This permanent deterministic shock is a new tax that will be implemented in the future (e.g. 4 periods after this moment ). The model also includes some other stochastic shocks. And now I want to compare the irfs under these stochastic shocks with and without this permanent deterministic shock embeded. How should I make this realized ? ( I searched similar posts in the forum. It seems the permanent deterministic shock will not impact the irfs ? Then how to depict ( or reflect ) the impact of this deterministic shock ?)

I see that the forecast command is used after stoch_simul, but I do not quite understand how to interpret the results of forecast. What is the economic connotation of these blue lines ? Is there any paper could be the reference ?

And if I want to use forecast command, is it necessary to make the into level form ( my original model is in log-level form, i.e. exp(variable) )?

Any reply will be appreciated. Thanks again !